National Payday Scholarship 2012 Official Entry SealBy: Jonathan Espinal

Short-term financing can be anyone’s life savior. The majority of people face a financial situation at least once in their lives, and many of them have to give up opportunities that could have determined their future and that of their family. The most common problem I have noticed is people dropping out of high school to help their families get out of a financial crisis, or not going to college because they cannot afford paying for it. With short-term financing one can get out of situations like these, or at least get started in college until some other way of income is found.

I personally believe short- term financing is very important, especially for students. There have been times where I had to take out short-term loans to pay for my classes and get through the semester, otherwise I wouldn’t have been able to do it, and it would have meant an extra year of school for me, or maybe the end of my college career, my future, and my dreams of becoming an engineer. I have seen this happen to many people throughout the time I have been attending college. Many of my friends also use short- term financing to pay for their tuition and travel in search of new job opportunities. Not having the money to accomplish one’s goals can be very frustrating, and sometimes can cause people to lose the hope and desire to succeed.

There are many other situations where short-term financing can come in handy, for example when the day of the rent is here and you do not know what to do or when someone in the family gets sick and there is no money to help them out. Short-term financing is the way to go, since we need the money as quick as possible in order to prevent those high hospital payments, and to help our loved ones get better. Afterwards they would be very grateful and might be able to pay the short-term loan themselves.

Occasionally, one can find a very good opportunity to invest in an amazing deal but do not have the money at the moment to make that type of investment. A good idea would be to borrow it and pay it back later; maybe the investment would get you twice the money or even more. If there was no short-term financing there might have been no way to take advantage of it and that is when the regrets come and the wondering of what would have happened if I made that investment. We do not like regretting or wondering the results of what could have been a good deal, so it would be a good decision to use short term financing for these types of situations.

Another way to take advantage of short-term financing is by using it to build credit, since credit is essential nowadays. We need credit to buy a house and to make almost any type of investment, sometimes jobs would do a credit background check before hiring anyone, therefore it is important to have a good credit standing. Even if we have cash we can borrow some more and pay in time to increase our credit score. It might not seem like a good idea to raise credit but in reality it is, well as long as the person is responsible and pays back in time and does not spend what they already have plus the money borrowed from the short-term loan. I use this method and it has worked incredibly for me, and for other people I know.

As has been noted short-term financing can be very useful in many situations and can play a big role in someone’s life, therefore it is something that more people should look into before making decisions that could determine their future.

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